Nippon Steel announced on the 11th that it will transfer its stake in US steel plate manufacturer AM/NS Calvert (Alabama) to its joint venture partner, European major steel company ArcelorMittal, for $1. Calvert competes with US steel giant U.S. Steel, which Nippon Steel intends to acquire. The decision to transfer the company was made to eliminate concerns about US competition laws and prepare for the acquisition of U.S. Steel. A loss of 230 billion yen is expected due to the transfer of ownership.
On the 11th, the company signed a transfer agreement with Mittal. The transfer will be carried out immediately after the acquisition of U.S. Steel. If the U.S. Steel acquisition plan fails, the transfer agreement will not be executed. It is said that of the 230 billion yen restructuring losses, 100 billion yen is related to cashing out. The company will maintain its dividend forecast of 160 yen per share for the fiscal year ending March 2025.
Calvert is responsible for steel processing for the U.S. auto industry. Nippon Steel and Mittal acquired Calvert from German steel giant ThyssenKrupp in 2014. Each company owns 50% of the company’s stock through its subsidiaries.
“We believe this is the most reliable course of action to obtain timely regulatory approval for the acquisition,” Managing Executive Officer Naohiko Iwai said at an online news conference. U.S. Steel’s acquisition plan is still under review by economic security and competition law authorities.
